Nippon, US Steel File Challenge to CFIUS

Japan’s Nippon Steel and the US Steel Corporation are continuing the fight against the Biden Administration’s decision to block their proposed $14.9 billion merger. The two companies filed their opening brief with the US Court of Appeals for the District of Colombia Circuit arguing that President Biden halted the merger for political reason and not because of a national security threat.

The two companies said in a statement that the merger “will enhance, not threaten, United States’ national security, protect US Steel workers, revitalize jobs in communities that rely on American steel and make American Steel bigger and better.

"Only the Companies’ partnership will deliver $55 per share to US Steel stockholders and guarantee the significant capital investments and technology sharing needed to ensure a strong US Steel for generations to come. Importantly, it would create an American steel champion that is well-positioned to compete against China.” 

The Companies argue that President Biden, for political reasons rather than national security concerns, predetermined the outcome of the CFIUS review, resulting in a “sham” evaluation aimed at stopping the transaction. The legal filing seeks to invalidate the administration’s actions and uphold the Companies’ agreement.

The case is proceeding on an expedited timeline, with final briefings due by March 17, followed by oral arguments. The Companies assert that the merger would enhance U.S. national security, protect domestic steelworkers, and strengthen American steel manufacturing against global competitors, particularly China.

For further details, refer to the Companies’ January 6, 2025 press release: Nippon Steel News.